Cryptocurrency analytics company CryptoQuant noted a significant slowdown in the XRP market, both in on-chain data and derivatives markets.
The company’s latest analysis states that XRP has entered a period described as a “volatility gap,” where speculative interest in the market has largely disappeared.
According to the analysis, while the XRP price continues its sideways movement around $1.4, there has been a significant decrease in transaction activity on the network. The total daily number of transactions has fallen by 20% in the last three months, dropping to 1.78 million. CryptoQuant stated that this indicates a weakening of organic usage on the XRP network.
Data from derivative markets revealed a similar picture. Funding rates on Binance reportedly fell into negative territory at -0.003, while total liquidation amounts decreased by 99%, dropping to just a few thousand dollars per day. This indicates that investors have significantly reduced their use of leverage, and speculative activity in the market has almost completely disappeared.
CryptoQuant specifically noted that Binance’s Estimated Leverage Ratio data dropped from its six-month high of 0.260 to 0.173. According to the company, despite negative funding rates, there isn’t an aggressive accumulation of short positions in the market. The sharp decline in liquidations also confirms that investors are moving away from highly leveraged trades.
The analysis argued that the XRP market has currently “completely exhausted its speculative fuel.” The company stated that with both declining interest from on-chain participants and the clearing of leverage in derivatives markets, XRP has shifted to a low-risk but low-liquidity structure.
According to CryptoQuant, historically, such periods of extreme stagnation are often preceded by strong volatility movements. Analysts stated that the XRP market is currently awaiting macroeconomic developments or a fundamental catalyst to determine a new direction.
*This is not investment advice.
